The Academy says, their findings have broadened the scope of economic analysis by constructing models explaining how market economy interacts

William Nordhaus and Paul Romer won the 2018 Nobel Economics Prize for integrating climate change and technological innovation into macroeconomic analysis, the Royal Swedish Academy of Sciences said on Monday.

"Their findings have significantly broadened the scope of economic analysis by constructing models that explain how the market economy interacts with nature and knowledge," the academy said in statement.

Worth 9 million Swedish crowns ($1 million), the economics prize was established in 1968. It was not part of the original group of five awards set out in Swedish industrialist Alfred Nobel's 1895 will.